Motilal Oswal’s analysis report on Clean Science and Technology
Clean Science (CLEAN) missed our 1QFY24 EBITDA estimate, with a gross margin of 61.4% (vs. anticipated 69.8%), attributable to elevated uncooked materials prices and gross sales decline. EBITDAM stood at 40.5% (vs. 39% in 1QFY23). FMCG Chemicals grew QoQ in 1QFY24, whereas Performance Chemicals and Pharma & Agro Intermediates declined. The administration attributed the gross sales decline to 2/third quantity lower and 1/third decrease costs. However, the corporate maintained its market share as the general market additionally declined, adversely impacting product volumes. The present product costs are at their lowest, however the administration doesn’t anticipate additional declines, attributable to rising uncooked materials prices linked to rising crude costs.
Outlook
The inventory is at the moment buying and selling at 41x FY25E P/E with an EPS of INR 31.5 and 29x FY25E EV/EBITDA. Our goal value is INR 1,260, primarily based on 40x FY25E EPS. We reiterate our Neutral ranking on the inventory.
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Quess Corp – 04 -08 – 2023 – moti Clean Science & Technology – 04 -08 – 2023 – moti